Lawmakers turn up heat on SIPC over delays in Stanford case

Investors who lost money in the collapse of Stanford Financial continue to wait for word of whether the Securities Investor Protection Corp. will cover losses for clients of Stanford’s U.S. brokerage. SIPC’s board met to discuss the issue in mid-September, but since then, there’s been no decision.

The letter calls on SIPC to “bring this matter to a swift conclusion,” adding that “after more than 22 weeks, the Stanford victims and the American people want and deserve answers.”

The lawmakers also raise the prospect of new congressional hearings in the matter, saying if SIPC doesn’t make a decision by Dec. 15 — three months after its board meeting and six months after the SEC’s decision — then they will recommend Congress step in.

“If SIPC continues to delay their decision, we will use every asset at our disposal to provide assistance and guidance to those we represent,” the letter says.

By then, it will have been almost three years since Stanford Financial’s collapse.